Which of the Following Statements About Goodwill Is Correct

question 21

Multiple Choice

Which of the following statements about goodwill is correct?

• A) Goodwill is classified as a current asset.
• B) Goodwill can be purchased or sold as a separate item.
• C) Under IFRS 3/AASB 3 goodwill must be amortised.
• D) Goodwill arises from many factors, such as customer confidence, superior management and a favourable location.

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Definitions:

Peripheral Nerves

Peripheral nerves are the nerves outside of the brain and spinal cord that transmit sensory and motor information to and from the rest of the body.

CNS

The Central Nervous System (CNS) consists of the brain and spinal cord, responsible for processing information and controlling responses.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and transmits neural signals between the brain and the rest of the body.

Attentiveness

The state or quality of being attentively listening or watching; paying close attention to details.